Integrating water and energy issues

Dr B K Mukhopadhyay concluding his two-part article The question of energy security comes to the fore on the issue of water and energy. In fact the two issues are interrelated. Gone are the days when water remained independent from energy. The clarion call is there now for integrating water and energy policies. A major global water and energy company observes, "If you squander water, if you indiscriminately use power, then in the long run that will have implications for the world." Given water's role in power generation, water supply is increasingly a major concern. To be specific: energy security essentially refers thus to uninterrupted availability of energy for the economy at all times at prices that are broadly in line with what the rest of the world pays. To counter adverse situations, some developed as well as developing economies resort to storing large quantities of fuels - oil and gas - in order to tide over the likely duration of any supply disruption. The question remains: is it the solution? Temporarily these practitioners may counter the problem, but what happens in the long run? The moot point here is that - energy security is crucially important because it is a necessary condition for state sovereignty, without which the independence of statehood is void of its meaning. It is also a necessary precondition for sustainable economic growth, the inflow of foreign direct investment, economic stability and international competitiveness, which are conditions sine qua non for the welfare of its citizens. Examples are not far to seek on this score. The needs of the agricultural sector can also affect power supplies. In 2008, 2.2 billion cubic metres of water were diverted from three major hydroelectric plants in Vietnam for agriculture, leading to a shortfall of 430 million kilowatt-hours of electricity. Len Rodman rightly observed, "These two things- water and energy- come together and that's a big thing for the world to understand." Water is used not only to generate power through dams and steam but also as a coolant for nuclear, coal and gas-fired power plants, which are competing with agriculture, industry and urban consumption for water supplies. Especially, the Asian Development Bank's recent forecast is to count. To double the region's energy demand by 2030, 6,325 million tonnes of oil equivalent, or about 74 billion kilowatt-hours of electricity will be needed. So, the time now calls for countering what the situation would be. Essentially, energy efficiency is a strategic issue in the development process and countries like India have necessarily to strive for building an energy efficient society. If we look at the global picture we would locate that hardly any country is energy independent. Even Saudi Arabia - the world's largest oil exporter- imports refined petroleum products like gasoline. Gasoline is imported by Norway and also Nigeria, whereas natural gas is still imported by Russia and electricity and coal by Russia and Norway. Thus, the regions with abundant raw resources also rely on import of some form of energy. The fact remains that the vast majority of countries rely on a few energy-producing nations rich in hydrocarbon sources. Therefore, energy independence remains an unrealistic goal. Balancing the needs of the producers and consumers is thus as crucial as increasing the supply and curbing the demand. Remember, oil demand is projected to grow up to 115 million barrels per day by 2030 against 82 million barrels per day in 2004! For example: so far India is concerned it is to be kept in view that the oil reserves are estimated to be around 5.4 billion barrels (less than 0.5 per cent of the world oil reserves) and the natural gas reserves are of the order of one trillion cubic metres. The economy continues to be a net importer of energy - crude oil being the largest import bill eater. There remains a functional market for fuels globally and as such any country is free to purchase its requirement at the price that the market determines from time to time. At the same time, uncertainties prevail. War, political turmoil, natural disasters, accidents and such other events block the supply line and affect the availability at affordable prices. Problems are two-fold: in some vibrant areas a realistic approach is missing, or the works are not systematically carried on - lack of exact coordination, to be specific. So far as the indicator, per capita consumption of energy is concerned, India is among the lowest in the world. Side by side it is also a fact that India tops the list when it comes to the use of energy per unit of GDP. Power theft is silently tolerated! The fact remains that the vast majority of countries rely on a few energy producing nations rich in hydrocarbon sources. Therefore, energy independence remains an unrealistic goal. Balancing the needs of the producers and consumers is thus as crucial as increasing the supply and curbing the demand. Clearly, energy security is the reliable, stable and sustainable supply of energy at affordable prices and social cost. It has been the fact that for many years governments have struggled to provide energy security through a mix of policies that have tempered demand and increased supply, but there is growing evidence that these policies are falling far short of the effort needed. What is more: energy exporters and importers are interdependent and increasingly anxious about the reliability of energy supplies. Additionally, a number of interlinked issues and challenges have appeared in recent years!! That is why a comprehensive policy duly covering all of the vital areas such as nuclear energy tapping, minimisation of transmission loss, and emphasis on renewable energy sources, can help India inch forward towards self - reliance in energy. Close technical cooperation with the neighbouring economies emerges to be the crucial thing, which, in turn, will benefit all of the parties concerned. In such context the example of Japan- its expertise in energy efficient technology may be emulated. Energy management energy efficiency holds the key to ensuring security. Full-fledged cooperation among the major energy consuming nations in the matter of development and exploiting energy resources, especially in energy conservation, improvement of energy efficiency, development of alternative energy resources as well as environmental protection concerning energy utilisation and finally contribution towards maintaining the stability and security of international energy supply are the crucial needs. For that matter, no doubt, efforts must be made to promote the use of solar, wind and tidal energy, biomass and other renewable energy sources, especially keeping in mind the fact that the demand for petroleum products in India has been growing at a rate of around 3 per annum. There are obviously multiple elements to address the issue of securing energies. Minimising the size of strategic reserves - diversifying the geography of supply sources and the modes of fuel transport- are the other alternatives. Finally, the interdependencies between water and energy offer many positive synergies that can help achieve both energy and water security. Acclaimed author Steven Solomon argues that a paradigm shift in resource planning and management must be devised that treats water and energy as inseparable, complementary components of a linked continuum, where policy choices in one realm alter options and outcomes in the other. Accordingly, while the global population quadrupled in the 20th century, demand for freshwater resources increased by nine-fold during the same period. Mr. Solomon provides a glimpse into the world of water 'haves' and 'have-nots'. He outlines how countries like China and even entire regions like Central Asia are threatened by their own water scarcity, with cascading impacts on economic growth and national security. It is a welcome trend that research is continually being carried out on water treatment technologies that require less energy as well as power-generation facilities that would need less water. Leading companies are doing research aimed at integrating desalination--an energy intensive process to purify seawater with solar power. Advanced technologies to treat polluted water as well as recycle water from toilets, kitchen sinks and sewers for use in homes and industries will help address future needs. Rodman is quite correct when he says that encouraging people to change their consumption patterns of water and energy by helping them understand the link between the two is equally important. Actually, for the 21st century it has been all about the triangle - water, food and climate change. The challenge could only be mitigated if collaborative approaches are taken up backed by political will, market mechanisms and innovative technology. Market forces could work well under a cap-and-trade approach similar to those applied to carbon dioxide. Favouring market forces to play a role in the management of scarce water, defining the value of water will positively aid to take a big leap forward. The Writer, a noted Management Economist, is presently attached to the Gauhati University, India. He can be reached at email: m.bibhas@gmail.com